Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________________
FORM 11-K
______________________________________________
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| ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2016
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¨ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-35006
______________________________________________
SPECTRUM PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
______________________________________________
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
Spectrum Pharmaceuticals, Inc. 401(k) Plan
B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:
Spectrum Pharmaceuticals, Inc.
11500 South Eastern Avenue, Suite 240
Henderson, Nevada 89052
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Table of Contents
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Financial Statements: | |
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Supplemental Information: | |
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Report of Independent Registered Public Accounting Firm
To the Administrative Committee of
The Spectrum Pharmaceuticals, Inc. 401(k) Plan:
We have audited the accompanying statements of net assets available for benefits of the Spectrum Pharmaceuticals, Inc. 401(k) Plan (the “Plan”) as of December 31, 2016 and 2015, and the related statement of changes in net assets available for benefits for the year ended December 31, 2016. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2016 and 2015, and the changes in net assets available for benefits for the year ended December 31, 2016 in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 2 to the financial statements, during 2016, the Plan adopted new accounting guidance that modifies the presentation and disclosures required for certain investments. Our opinion is not modified with respect to this matter.
The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2016, has been subjected to the audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the basic financial statements but includes supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion, on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedule is fairly stated in all material respects in relation to the financial statements taken as a whole.
/s/ Raimondo Pettit Group
Torrance, California
June 28, 2017
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Statements of Net Assets Available for Benefits
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| December 31, |
| 2016 | | 2015 |
ASSETS | | | |
Investments, at fair value | | | |
Registered investment companies | $ | 10,829,308 |
| | $ | 8,347,094 |
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Spectrum Pharmaceuticals, Inc. common stock fund | 1,937,851 |
| | 2,127,618 |
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Total investments at fair value | 12,767,159 |
| | 10,474,712 |
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Common/collective trust, at contract value | 952,638 |
| | 812,646 |
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Total investments | 13,719,797 |
| | 11,287,358 |
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Receivables: | | | |
Employer contributions | 64,559 |
| | 65,399 |
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Participant contributions | 51,864 |
| | 45,566 |
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Notes receivable from participants | 240,674 |
| | 306,856 |
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Total receivables | 357,097 |
| | 417,821 |
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NET ASSETS AVAILABLE FOR BENEFITS | $ | 14,076,894 |
| | $ | 11,705,179 |
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The accompanying notes are an integral part of these financial statements.
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Statement of Changes in Net Assets Available for Benefits
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| Year ended, December 31, 2016 |
ADDITIONS TO NET ASSETS ATTRIBUTED TO: | |
Contributions: | |
Participant | $ | 2,142,563 |
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Participant rollovers | 79,349 |
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Employer | 1,111,869 |
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| 3,333,781 |
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Investment income (loss): | |
Interest and dividends | 287,879 |
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Other income | 1,505 |
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Net depreciation in fair value of investments | (80,866 | ) |
| 208,518 |
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Interest income from notes receivable from participants | 14,280 |
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Total additions | 3,556,579 |
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DEDUCTIONS TO NET ASSETS ATTRIBUTED TO: | |
Distributions to participants | 1,149,888 |
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Administrative expenses | 34,976 |
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Total deductions from net assets | 1,184,864 |
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NET INCREASE IN NET ASSETS | 2,371,715 |
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NET ASSETS AVAILABLE FOR BENEFITS, AT BEGINNING OF YEAR | 11,705,179 |
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NET ASSETS AVAILABLE FOR BENEFITS, AT END OF YEAR | $ | 14,076,894 |
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The accompanying notes are an integral part of these financial statements.
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements
December 31, 2016
1. Description of the Plan
The following description of the Spectrum Pharmaceuticals, Inc. 401(k) Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution pension plan covering eligible employees of Spectrum Pharmaceuticals, Inc. (the “Company” or “Spectrum”) as defined in the Plan Document. The Plan was adopted January 1, 1990, and established for the purpose of providing retirement benefits for eligible employees of the Company. The Plan is subject to regulation under the Employee Retirement Income Security Act of 1974 (“ERISA”) and the qualification provisions of the Internal Revenue Code (the “Code”).
Effective January 1, 2015, the Plan was amended and restated to bring the plan into compliance with the Pension Protection Act of 2006 and other legislative and regulatory changes.
Administration
The Plan has designated Rajesh C. Shrotriya, MD, Chairman of the Board of Directors and Chief Executive Officer ("CEO"), as trustee of the Plan. MG Trust Company, LLC, (“MG Trust”) serves as the account custodian for the Plan. Digital Retirement Solutions, Inc. (“DRS”) performs administrative and record keeping services for the Plan.
Eligibility
All employees of the Company are eligible to participate in the Plan, provided the employee has completed three months of employment, and is not otherwise covered by a collective bargaining agreement with the Company that includes retirement benefits. An eligible employee may enter the Plan on the first day of the month following his or her satisfaction of the eligibility requirements.
Employees of newly acquired entities are given credit for years of service earned prior to the Company’s ownership. If this credit for prior service allows such employees to meet Plan eligibility requirements, they have the option of participating in the Plan on the first day of the month following their date of hire.
Contributions
Each year, participants may elect to make pre-tax contributions up to 75% of their eligible compensation, as defined in the Plan. In addition, participants may elect to make after-tax (Roth) contributions up to 75% of their eligible compensation. Compensation deferrals cannot exceed the maximum deferral, as determined by the IRS each year. Such deferral limitation was $18,000 in 2016 and 2015, respectively. Employees who attained the age of 50 before the end of the plan year, were eligible to make additional catch-up contributions of up to $6,000 in 2016 and 2015, respectively. Participants may also make rollover contributions into the Plan from other qualified plans.
The Company provides matching contributions generally in the form of Company stock, under a Safe Harbor arrangement, equal to 100 percent of the first three percent of eligible compensation, deferred by a participant and 50 percent of the next two percent of eligible compensation deferred by a participant. The Company’s matching contribution made on behalf of any participant for any Plan year shall not exceed four percent of eligible compensation. The Company has the right under the Plan to discontinue or modify its matching contributions at any time. The value of the Company’s aggregate matching contribution was $1,111,869 for the year ended December 31, 2016. Additional amounts may be contributed at the discretion of the Company’s Board of Directors.
Participant Accounts
DRS maintains an account in the name of each participant. Each eligible participant’s account is credited with (a) the participant’s contributions, (b) the Company’s Safe Harbor matching contributions, and (c) an allocation of interest, dividends and any change in the market value of the various investment funds. Each eligible participant’s account is charged with any
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
withdrawals or distributions requested by the participant and an allocation of administrative expenses, if applicable. Allocations are based on the ratio that each participant’s account balance in the fund bears to the total account balances of all participants in the respective fund.
Investment Options
Participants direct the investment of their contributions and any subsequent changes made to the Company’s matching contributions (in the form of Spectrum's common stock) into various investment options offered by the Plan. These options include numerous registered investment companies, a common/collective trust and Spectrum’s common stock. Participants may change their investment elections at any time for both existing account balances and future contributions.
Vesting
Participant contributions and Company Safe Harbor matching contributions are fully vested when made. Participants in the Plan receive vesting credit for Company discretionary matching contributions, if any, based upon years of service, beginning with the date of employment with the Company or one of its subsidiaries, as follows:
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Years of Service (whole years) | | Discretionary Matching Contribution Vesting |
Less than 2 | | —% |
2 | | 20% |
3 | | 40% |
4 | | 60% |
5 | | 80% |
6 or more | | 100% |
Distributions and Payments of Benefits
On termination of service due to death, disability, retirement, or other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution, or as directed by the participant in accordance with the Plan's provisions. The Plan also permits in-service withdrawals for participants attaining certain age requirements and distributions for hardships, as defined in the Plan document.
Forfeitures
Although participant contributions and the Company's Safe Harbor matching contributions are fully vested at all times, forfeitures could result from the Company's discretionary contributions and certain excess matching. Excess Company matching results in a credit to the Plan and are held in a separate account for the payment of Plan administrative expenses. During the year ended December 31, 2016, $1,748 of forfeitures was used to pay administrative expenses. At December 31, 2016 and December 31, 2015, there was $0 held in this forfeiture account.
Investment Management Fees and Operating Expenses
Investment management fees and operating expenses charged to the Plan for investments in the various funds are deducted from the income earned on a daily basis and are reflected as a component of the net appreciation/(depreciation) in the fair value of investments. Effective January 1, 2015, an ERISA Investment Advisory Agreement was entered into whereby rebates from certain fund investments are deposited into a separate account to be used to pay investment advisory fees and other revenue sharing is credited to the Plan to offset administrative expenses. Such amounts are reported in administrative expenses and other income, rather than in net appreciation/(depreciation). As of December 31, 2016, there was approximately $180 in Plan assets designated to pay Plan investment advisory fees.
Administrative Expenses
The compensation or fees of accountants, counsel and other specialists and any other costs of administering the Plan are generally paid by the Company (see Note 4). As discussed above, beginning in 2015, there was a change in the reporting of certain investment advisory expenses in the financial statements. Administrative expenses that are not paid by the Company are
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
paid by the Plan. Administrative expenses for the year ended December 31, 2016 paid by the Plan were $34,976 and are included in administrative expenses.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of Plan termination, any unvested amounts of plan participants will become fully vested.
Notes Receivable from Participants
Loans to participants are secured by the participant’s account balance and may not exceed the lesser of 50% of the participant’s account balance or $50,000 in the aggregate for any individual participant. Loans bear interest at fixed annual rates, as determined by the Plan trustees, that are the prime interest rate plus two percent on the date the loan is processed. At December 31, 2016 and 2015, the annual interest rate of all loans outstanding was between 5.25% and 10.25%. Principal and interest are paid ratably through payroll deductions over a term not to exceed five years, unless the loan qualifies as a home loan, in which case the term may not exceed 15 years. A participant applying for a loan through the Plan will be charged a $125 loan application fee. The loan application fee is nonrefundable and will be used to offset the administrative expenses associated with the loan.
Reclassifications
Certain reclassifications have been made to the 2015 financial statements to conform to the 2016 presentation.
2. Summary of Significant Accounting Policies
Basis of Accounting
The Plan’s financial statements are prepared on the accrual basis, in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP).
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 962 Plan Accounting Defined Contribution Pension Plans, requires investment contracts held by a defined-contribution plan to be reported at fair value, except for fully benefit-responsive investment contracts, which are reported at contract value. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities at the date of the financial statements. Significant estimates are made in determining fair value of investments. Actual results could differ from those estimates. The current economic environment has increased the level of uncertainty inherent in these estimates and assumptions.
Investment Valuation and Income Recognition
The Plan’s investments are stated at fair value with the exception of the Wells Fargo Stable Return Fund (a common/collective trust fund) which is stated at its contract value. See Note 3 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade date basis, dividends are recorded on the record date and interest income is recorded on the accrual basis. Net appreciation (depreciation) includes the Plan's gains and losses on investments purchased and sold, as well as held during the year.
Fully Benefit-Responsive Investment Contract
One of the investment options offered by the Plan, the Wells Fargo Stable Value Fund M (the “Stable Value Fund”), is a common collective trust that is fully invested in Wells Fargo Stable Return Fund G, which is fully invested in wrap contracts
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
deemed to be fully benefit-responsive and therefore the Fund is stated at contract value. The fixed income portfolio consists of investment grade fixed income securities, primarily U.S. Treasury, agency, corporate, mortgage-backed, and asset-backed. Contract value, as reported to the Plan by Wells Fargo Bank, represents contributions made under the contract, credited with earnings, and charged for participant withdrawals and administrative expenses.
There are no reserves against contract value for credit risk of the contract issuer or otherwise. Contract value at December 31, 2016 and 2015, as reported by Wells Fargo was $952,638 and $812,646, respectively. The crediting interest rate is based on a formula agreed upon with the issuer but it may not be less than zero percent. Such interest rates are reviewed on a periodic basis for resetting. At December 31, 2016 and 2015, the average crediting interest rate was 1.94% and 1.79%, respectively, and the average yields were approximately 1.93% and 1.83%, respectively.
Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (1) any substantive modification to the Plan or administration of the Plan that is not consented to by the contract issuer (including complete or partial plan termination or merger with another plan), (2) establishment of a defined contribution plan that competes with the Plan for employee contributions, (3) plan sponsor events, such as divestitures, spin-offs or early retirement programs that cause a significant withdrawal from the Plan, (4) transfer of assets from the fund directly to a competing fund option, (5) the failure of the Plan to qualify under Section 401(a) or Section 401(k) of the Internal Revenue Code. The Plan administrator does not believe that the occurrence of any of these events, which would limit the Plan’s ability to transact at contract value with participants are probable of occurring.
Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.
Risks and Uncertainties
The Plan assets consist of various investments which are exposed to a number of risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets available for Benefits and the Statement of Changes in Net Assets Available for Benefits as of December 31, 2016, and 2015, respectively.
Payment of Benefits
Benefit payments to participants are recorded when paid.
Contributions
Contributions made by participants and the Company are recorded on an accrual basis. Contributions are recognized during the period in which the related compensation was paid.
Administrative Expenses
The Company pays for certain administrative expenses for the Plan. Only expenses paid by the Plan are reflected in the Plan’s financial statements.
Recent Accounting Standards Pronouncements
In May 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 removes the requirements to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. However, sufficient information must be provided to permit a reconciliation of the fair value of assets categorized within the fair value hierarchy to the amounts presented in the statement of financial position. ASU 2015-07 also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient.
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
The Plan adopted the provisions of ASU 2015-07 for the 2016 plan year and the ASU has been applied retrospectively to December 31, 2015. The impact of adopting this ASU is reflected in Note 3.
In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) and Health and Welfare Benefit Plans (Topic 965): Part I – Fully Benefit-Responsive Investment Contracts, Part II - Plan Investment Disclosures and Part III - Measurement Date Practical Expedient (“ASU 2015-12”). The amendments in this update remove the requirement to record fully benefit-responsive investment contracts at fair value and designate contract value as the only required measure for these contracts. The amendments also remove the requirement to disclose (a) individual investments that represent five percent or more of net assets available for benefits and (b) the net appreciation or depreciation for investments by general type, however, the net appreciation or depreciation in investments is still required to be presented in aggregate. The Plan adopted the provisions of ASU 2015-12 for the 2016 plan year and the ASU has been applied retrospectively to December 31, 2015. The impact of adopting this ASU is reflected in Note 2 (see "Fully Benefit-Responsive Investment Contracts" above) and Note 3.
3. Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described as follows:
•Level 1: Quoted prices in active markets for identical assets or liabilities.
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• | Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. |
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• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
The Plan uses appropriate valuation techniques based on the available inputs to measure the fair value of their investments. When available, the Plan measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs are only used when Level 1 or Level 2 inputs are not available.
The registered investment companies are valued at the net asset value (“NAV”) of shares held by the Plan at year-end, based upon quoted market prices. Spectrum common stock is valued at the NAV at year-end, based upon the closing quoted market price of the Company common stock held at year-end.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following tables represent the Plan’s fair value hierarchy for its investments as of December 31, 2016 and 2015:
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| Fair Value Measurements as of December 31, 2016 |
Investment Category | Level 1 | | Level 2 | | Level 3 | | Total |
Total Registered Investment Companies | $ | 10,829,308 |
| | $ | — |
| | $ | — |
| | $ | 10,829,308 |
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Spectrum Pharmaceutical Common Stock | 1,937,851 |
| | — |
| | — |
| | 1,937,851 |
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Total Investments at Fair Value | $ | 12,767,159 |
| | $ | — |
| | $ | — |
| | $ | 12,767,159 |
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| Fair Value Measurements as of December 31, 2015 |
Investment Category | Level 1 | | Level 2 | | Level 3 | | Total |
Total Registered Investment Companies | $ | 8,347,094 |
| | $ | — |
| | $ | — |
| | $ | 8,347,094 |
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Spectrum Pharmaceutical Common Stock | 2,127,618 |
| | — |
| | — |
| | 2,127,618 |
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Total Investments at Fair Value | $ | 10,474,712 |
| | $ | — |
| | $ | — |
| | $ | 10,474,712 |
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Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
4. Related Party Transactions
The Plan allows for transactions with certain parties who may perform services or have fiduciary responsibilities to the Plan. Certain Plan investments are shares of mutual funds managed by the custodian or are shares of Spectrum’s common stock. The Plan issues loans to participants, which are secured by the vested balances in the participant’s account. The Company may also pay certain administrative expenses on behalf of the Plan, which totaled $28,199 relating to the year ended December 31, 2016. Such transactions all qualify as exempt party-in-interest transactions under the provisions of ERISA.
5. Concentration, Market and Credit Risk
The Plan provides for various investment options including the Company’s common stock. Investments are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, it is possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amount reported in the Statements of Net Assets Available for Benefits. As of December 31, 2016 and 2015, approximately 14% and 19% respectively, of the investments of the Plan consisted of securities of its sponsor, Spectrum Pharmaceuticals, Inc. As of December 31, 2016 and 2015, Spectrum’s stock price closed at $4.43 and $6.03, respectively.
6. Tax Status of the Plan
The IRS has determined and informed the Company by a letter dated March 31, 2014, that the Plan and related trust are designed in accordance with applicable sections of the IRC. The Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and therefore believe that the Plan is qualified and the related trust is tax-exempt.
Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2013.
7. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of the Plan’s net assets available for benefits per the financial statements to the Form 5500 as of December 31:
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| As of December 31, |
| 2016 | | 2015 |
Net assets available for benefits per the financial statements | $ | 14,076,894 |
| | $ | 11,705,179 |
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Add: adjustment to fair value from contract value for fully benefit-responsive investment contract | 1,905 |
| | 3,999 |
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Net assets available for benefits per the Form 5500 | $ | 14,078,799 |
| | $ | 11,709,178 |
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The following is a reconciliation of the Plan’s net depreciation in fair value of investments per the financial statements to the Form 5500 as of for the year ended December 31, 2016:
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| | | |
Net depreciation in fair value of investments per the financial statements | (80,866 | ) |
Add: adjustment to contract value for fully benefit responsive investment contract | 1,905 |
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Less: prior year adjustment to contract value for fully benefit-responsive investment contract | (3,999 | ) |
Net depreciation in fair value of investments per the Form 5500 | $ | (82,960 | ) |
Spectrum Pharmaceuticals, Inc. 401(k) Plan
Notes to Financial Statements (Continued)
8. Subsequent Events
In providing the disclosure contained in this note, the Plan evaluated events occurring between the end of its most recent plan year end and June 28, 2017, the date the accompanying financial statements became available to be issued.
During this period there were no events or transactions occurring which require recognition or disclosure in these financial statements on Form 11-K.
Spectrum Pharmaceuticals, Inc. 401(k) Plan
EIN: 93-0979187, PN: 001
Supplementary Information
Schedule of Assets (Held at End of Year)
As of December 31, 2016
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Identity of Issue | | Description of Investment | | Type of Investment | | Current Value |
Janus Mutual Funds | | Janus Enterprise Fund | | RIC | | $ | 500,901 |
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Energy Select Sector SPDR | | Energy Select Sector SPDR ETF | | RIC | | 227,435 |
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Federated Government Obligations | | Federated Government Obligations IC | | RIC | | 37,515 |
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Harbor Mid Cap Value | | Harbor Mid Cap Value Instl | | RIC | | 500,572 |
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State Street Global Advisors | | SPDR S&P 500 | | RIC | | 1,039,145 |
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State Street Global Advisors | | SPDR Gold Shares | | RIC | | 77,096 |
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TCW Investment Management, Co. | | TCW Total Return Bond | | RIC | | 326,973 |
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T. Rowe Price Associates, Inc. | | T. Rowe Price Emerging Markets Bond | | RIC | | 241,350 |
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Vanguard Group, Inc. | | Vanguard Long Term Investment Grade | | RIC | | 325,921 |
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J.P. Morgan Funds | | JP Morgan Disciplined Equity | | RIC | | 235,083 |
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Janus Mutual Funds | | Intech U.S. Core | | RIC | | 871,019 |
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Fidelity Investments | | Fidelity Advisor Mid Cap Value | | RIC | | 426,556 |
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J.P. Morgan Funds | | JP Morgan Small Cap Core | | RIC | | 491,920 |
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Fidelity Investments | | Fidelity Advisor Balanced | | RIC | | 928,165 |
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Fidelity Investments | | Fidelity Advisor Investment Grade | | RIC | | 237,057 |
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Hartford Funds | | Hartford International Growth | | RIC | | 402,195 |
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Capital Research and Management Co. | | American Funds New World R5 | | RIC | | 727,754 |
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Fidelity Investments | | Fidelity Advisor Worldwide | | RIC | | 647,619 |
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Fidelity Investments | | Fidelity Select Software & Comp Port | | RIC | | 659,390 |
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Wells Fargo Advisors | | Wells Fargo Precious Metals | | RIC | | 242,205 |
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Prudential Financial | | Prudential Global Total Return | | RIC | | 88,872 |
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Vanguard Group, Inc. | | Vanguard U.S. Value | | RIC | | 378,759 |
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Fidelity Investments | | Fidelity Telecom and Utilities | | RIC | | 16,686 |
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Fidelity Investments | | Fidelity Select Health Care Portfolio | | RIC | | 451,919 |
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Fidelity Investments | | Fidelity Real Estate Investment | | RIC | | 98,132 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2020 | | RIC | | 99,192 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2025 | | RIC | | 59,627 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2030 | | RIC | | 83,737 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2035 | | RIC | | 48,607 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2040 | | RIC | | 131,513 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2045 | | RIC | | 53,013 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2050 | | RIC | | 15,475 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement 2055 | | RIC | | 7,531 |
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J.P. Morgan Funds | | JP Morgan Smart Retirement Income | | RIC | | 761 |
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Vanguard Group, Inc. | | Vanguard Stock Market Index | | RIC | | 149,613 |
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*Spectrum Pharmaceuticals, Inc. | | Spectrum Pharmaceuticals Common Stock Fund | | SPCS | | 1,937,851 |
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Wells Fargo Bank, N/A | | Wells Fargo Stable Value Fund M | | CCT | | 952,638 |
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| | Total Investments | | | | $ | 13,719,797 |
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* Participant Loans | | Participant Loans (maturing 2017 to 2027) at interest rates of 5.25% to 10.25% | | | | $ | 240,674 |
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* Indicates a party-in-interest to the Plan.
RIC - Registered investment Company
CCT - Common Collective Trust
SPCS - Spectrum Pharmaceutical Common Stock
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan administrator of the Spectrum Pharmaceuticals, Inc. 401(k) Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | SPECTRUM PHARMACEUTICALS, INC. |
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Date: | June 28, 2017 | By: | | /s/ Rajesh C. Shrotriya, MD |
| | | | Rajesh C. Shrotriya, MD |
| | | | Chairman of the Board of Directors and Chief Executive Officer, and Plan Trustee of Spectrum Pharmaceuticals, Inc. 401(k) Plan. |
EXHIBIT INDEX
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Exhibit Number | Exhibit Title |
23.1 | Consent of Independent Registered Public Accounting Firm, Raimondo Pettit Group |